Affected market: Grocery retailing
On the basis of the information available to it, the Office of Fair
Trading has decided that the anticipated acquisition by Tesco plc of a
former Safeway site at Coulby Newham from Wm Morrison Supermarkets plc
does not qualify for investigation under the mergers provisions of the
Enterprise Act 2002 (the Act), because the site at Coulby Newham is not
an enterprise as defined in section 129 of the Act. A relevant merger
situation has, therefore, not been created.
A new supermarket is being constructed at the site in question. There is
an ex-Safeway store (now closed) on an adjacent site but Tesco will not
be purchasing this store. Tesco will acquire a petrol filling station
(PFS) on the site but this was closed at the same time as the old
Safeway store. There is no business activity being pursued at the site
that could be said to be 'continued' after the acquisition. As such,
the acquisition is not that of an 'enterprise'.